Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a specific year if the firm sold 4,000 units of the output at $300 per unit , the accounting profits were A)$00,000 and it's economic profits were zero B)$200,000 and it's economic profits were zero C)$100,000 and it's economic profits were$100,000 D)zero and it's economic loss was $200,000
Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a specific year if the firm sold 4,000 units of the output at $300 per unit , the accounting profits were A)$00,000 and it's economic profits were zero B)$200,000 and it's economic profits were zero C)$100,000 and it's economic profits were$100,000 D)zero and it's economic loss was $200,000
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.7IP
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Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a specific year if the firm sold 4,000 units of the output at $300 per unit , the accounting profits were
A)$00,000 and it's economic profits were zero
B)$200,000 and it's economic profits were zero
C)$100,000 and it's economic profits were$100,000
D)zero and it's economic loss was $200,000
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